Latest articles from Algeria

Private banks in Algeria have until now been highly profitable, as the energy-rich country was awash with liquidity. But a government that failed to hedge its hydrocarbon wealth against a price drop is now cutting public spending and tightening trade finance rules, driving private banks to rethink their business strategy. Richard Nield reports.

With oil and gas output diminishing, Algeria is desperate to diversify its economy and avoid a continued slide towards unsustainable fiscal deficits. The country’s political stability hinges on whether or not it succeeds.

Algeria’s banking sector is one of the biggest in Africa, but it is also one of the most opaque and is dominated by state banks. Yet private lenders, all of which are foreign-owned, still find ways to operate profitably and many are wanting to expand.

Arab banks offset the turmoil of the Arab Spring and offered a robust performance in 2011 with impressive growth across the key financial indicators. And with minimal exposure to the eurozone crisis, the region's banks are expected to continue their recovery from the global financial crisis.

Algeria is working hard to recover from years of civil war. Its twin aims of social reconciliation and fiscal reform include restructure of the financial services sector. James Eedes reports on progress.

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